WHO CAN BENEFIT FROM OFFSHORE BANKING
The profile of a typical offshore bank account holder generally depends upon whether the account holder is an individual client or a corporate client, but both have one thing in common, offshore banking can have many benefits and a series of advantages for both:
- Offshore banks provide access to politically and economically stable jurisdictions. This may be an advantage for those resident in areas where there is a risk of political turmoil who fear their assets may be frozen, seized or disappear for example, during economic crizis etc. However, developed countries with regulated banking systems offer the same advantages in terms of stability.
- Some offshore banks may operate with a lower cost base and can provide higher interest rates than the rate in the home country due to lower overheads and a lack of governement intervention.
- Offshore finance is one of the few industries, along with tourism, that geographically remote island nations can competitively engage in. It can help developing countries source investments and create growth in their economies, and can help redistribute world finance from the developed to the developing world.
- Interest is generally paid by offshore banks without tax deducted. This is an advantage to individuals who do not pay tax on worldwide income, or who do not pay tax until the tax return is agreed.
- Some offshore banks offer banking services that may not be available from domestic banks such as anonymous offshore bank accounts, higher or lower rate loans based on risk and investment opportunities not available elsewhere.
- Offshore banking is often linked to other structures, such as offshore companies, offshore trusts or foundations, which may have specific tax and asset protection advantages for some individuals.
- Offshore banking creats additional tax and banking competition and is an advantage to the industry as tax competition allows people to choose an appropriate balance of services and taxes
The profile of a typical offshore bank account holder generally depends upon whether the account holder is an individual client or a corporate client, but both have one thing in common, offshore banking can have many benefits and a series of advantages for both:
- Offshore banks provide access to politically and economically stable jurisdictions. This may be an advantage for those resident in areas where there is a risk of political turmoil who fear their assets may be frozen, seized or disappear for example, during economic crizis etc. However, developed countries with regulated banking systems offer the same advantages in terms of stability.
- Some offshore banks may operate with a lower cost base and can provide higher interest rates than the rate in the home country due to lower overheads and a lack of governement intervention.
- Offshore finance is one of the few industries, along with tourism, that geographically remote island nations can competitively engage in. It can help developing countries source investments and create growth in their economies, and can help redistribute world finance from the developed to the developing world.
- Interest is generally paid by offshore banks without tax deducted. This is an advantage to individuals who do not pay tax on worldwide income, or who do not pay tax until the tax return is agreed.
- Some offshore banks offer banking services that may not be available from domestic banks such as anonymous offshore bank accounts, higher or lower rate loans based on risk and investment opportunities not available elsewhere.
- Offshore banking is often linked to other structures, such as offshore companies, offshore trusts or foundations, which may have specific tax and asset protection advantages for some individuals.
- Offshore banking creats additional tax and banking competition and is an advantage to the industry as tax competition allows people to choose an appropriate balance of services and taxes